BTR: Gold and Rare Earths
When it comes to investing in the metals commodities, most investors are familiar with gold, silver and copper. Among the precious metals, palladium and platinum have started to become more widely held as emerging markets demand has propped prices for these metals. Plenty of other industrial metals, such as aluminum, nickel and zinc, among others can be invested in through stocks or ETFs, but the reality is gold is still the king of investable metals.
That’s understandable. After all, the yellow metal has quite a year. Actually, it’s had quite a decade, but gold’s 2010 has been very good news for BonTerra Resources (TSX: BTR), a Canadian junior minor that is in the process of tapping some potentially lucrative gold properties in the eastern part of its home country.
On the surface, BonTerra appears to be a straight gold play. That’s not necessarily bad news. After all, there is a reason that the shares have been camped out at a new 52-week high for much of late December, but dig a little deeper and you may just find that BonTerra holds a potentially profitable surprise for the astute investor.
In a recent interview, BonTerra President Mitchell Adam acknowledged that company has access to some rare metals properties in eastern Canada. While not yet the focal point of the company’s mining efforts, BonTerra’s rare metals exposure could be viewed as just one more reason to be excited about the company and its shares.
Rare metals, also known as rare earths, really aren’t that rare but countries with large deposits of them such as the U.S. haven’t invested in mining these minerals for years. Unfortunately, these metals are in high demand because they are necessary components for an array of high-tech gadgets from smartphones to hybrid cars.
China now holds the dominant position in the rare earths market, leaving major rare earths consumers such as Japan and the U.S. scurrying to find alternative supplies as China cuts exports. Perhaps BonTerra will one day be one of the companies to fill the rare earths void. In the meantime, the gold exposure should drive the shares higher.
For additional information on BonTerra Resources Inc. (TSX.V: BTR) visit http://www.stockorange.com/client-profiles/btr
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